BA 213 - Managerial Accounting

• CLO#1: Explain features of managerial accounting and identify the functions of management; define the three classes of manufacturing costs; distinguish between product and period costs; calculate the cost of goods manufactured; and explain the difference between a merchandising and manufacturing income statement and balance sheet.
• CLO#2: Explain characteristics and purposes of cost accounting; describe the flow of costs in a job order cost accounting system; explain nature and importance of a job order cost sheet; indicate how predetermined overhead costs are determined and used; prepare entries for jobs completed & sold; & distinguish between under- & over applied manufacturing overhead.
• CLO#3: Describe the uses of the process cost system; explain the similarities and differences between job order cost and process cost systems; explain the flow of costs in a process cost system; prepare the journal entries to assign manufacturing costs in a process cost system; compute equivalent units; prepare a production cost report. (ILO: Quantitative Literacy and Reasoning)
• CLO#4: Explain activity-based (ABC) costing; just-in-time (JIT) processing; and quality management systems.
• CLO#5: Distinguish between variable, fixed, and mixed costs; explain the significance of relevant range; list the components of cost-volume-profit analysis; define contribution margin and how it can be expressed; calculate the break-even point, margin of safety, and sales needed to reach a target net income; and describe the essential feature of a cost volume-profit income statement.
• CLO#6: Indicate the benefits of and essentials of effective budgeting; identify the budgets that comprise the master budget; describe the sources of preparing the budgeted income statement; explain the principal sections of a cash budget; and indicate the applicability of budgeting in nonmanufacturing companies.
• CLO#7: Describe the concept of budgetary control; evaluate the usefulness of static budget reports; explain the development of flexible budgets and the usefulness of flexible budgets and the usefulness of flexible budget reports.
• CLO#8: Identify the features of a standard cost accounting system, the advantages of standard costs and how standards are set; state the formulas for determining direct materials, direct labor, and manufacturing overhead variances; and describe the reporting of variances.
• CLO#9: Describe the concept of responsibility accounting and identify the content of responsibility reports for cost and profit centers; and explain the basis and formula used in evaluating performance in investment centers.
• CLO#10: Identify the steps in management’s decision-making process; describe the concept of incremental analysis; identify the relevant costs in accepting an order at a special price, product & sales mix, make-or-buy decisions, and sell or process materials further.
• CLO#11: Identify the relevant factors to be considered in retaining or replacing equipment and in deciding whether to eliminate an unprofitable segment; and compare and contrast the capital budgeting techniques of annual rate of return, cash payback, net present value, and internal rate of return.